Coalition Urges Lifting of Section 232 Tariffs On Canada, Mexico

Lifting of Section 232 steel and aluminum tariffs on Canada and Mexico is being urged by a coalition of agriculture, manufacturing and business groups who maintain the actions have created difficulties for the ag sector. "In full recognition of the importance of U.S.-Mexico-Canada Agreement (USMCA) ratification to the economic interests of all three countries, wish to underscore the importance of lifting tariffs on steel and aluminum imports and the removal of all retaliatory tariffs on trade among the parties," a coalition of farm and agriculture groups said in a letter to Trump administration officials. The letter was addressed to Commerce Secretary Wilbur Ross and U.S. Trade Representative (USTR) Robert Lighthizer. Among groups signing it were the Grocery Manufacturers Association (GMA), National Corn Growers Association (NCGA), National Pork Producers Council (NPPC), North American Meat Institute (NAMI), U.S. Chamber of Commerce, U.S. Grains Council, U.S. Meat Export Federation (USMEF), United Egg Producers and United Fresh Produce Association. USMCA benefits could fail to materialize if the metals tariffs stay in place, something a Farm Foundation analysis warned last year. The coalition reiterated those concerns, writing "For many farmers, ranchers and manufacturers, the damage from the reciprocal trade actions in the steel dispute far outweighs any benefit that may accrue to them from the USMCA." Last year, there was talk that the metals duties would be lifted on Canada and Mexico following a successful conclusion to USMCA negotiations, but that did not prove to be the case. Meanwhile, lawmakers are pressing the administration to lift the duties, including new Senate Finance Committee Chairman Chuck Grassley (R-Iowa). Upon taking the committee gavel, Grassley said he would use his perch to work towards approval of USMCA but added, "lingering Section 232 tariffs on steel and aluminum imports from Canada and Mexico" must be addressed.